Skip to main content

tv   Power Lunch  CNBC  April 22, 2013 1:00pm-2:00pm EDT

1:00 pm
stephanie? >> lennox. >> i'm boying coach. short coach. don't forget to catch more fast tonight. power lunch picks up the ball right now. >> halftime's over. the second half of your trading day begins now. that means less money for air traffic controllers and more time for you at the airport. and another bite out of apple. key questions about the future of this company that many thought was invincible. and another, a sudden big move for the stock of google before
1:01 pm
self-correcting. that was the company involved here. what happened and how you can get hurt. first to sue. >> hi. welcome back. we missed you. great to have you back here. we start power lunch with a manpower problem at the nation's airports. politicians are not rising above and neither are many of the air travelers out there. we begin with hampton pierceon. >> here at reagan national, the number of flights being delayed has been increasing throughout the day. a snapshot looking at the schedule board shows 30 minutes to one hour delays. delays due to furloughs of
1:02 pm
controller controllers business and leez travelers we talk to today think the government ought to have come up with a better solution. r. >> i think they should have more air traffic controllers because it helps with our safety. >> i have tsa approved. i travel constantly. >> the major airlines is suing the
1:03 pm
the. >> in the meantime for travelers over the next six mobt welcome to the new world post sequester. >> thank you very much. let's go to phil lebeau on the airline stocks that stand us up for the most because of the cut backs. buckingham research out today. due to the impact bringing it down for a couple of pennies. that's really where you're going to see most of the congestion problems. that's why ual is another one where jet blue or buckingham is
1:04 pm
out today. they have the exposure to newark, chicago, la. remember delta came out a few weeks ago and warned that the sequester could impact its profits in the first quarter. the that's where we will see the impact of the sequester cuts. >> phil, thank you very much. take a look at gold. it is moving higher supported by strong physical buying after hitting a two-year low last week.
1:05 pm
>> four big cap stocks getting a lot of attention today. first, ibm dropped elements 10%. the stock is down another buck and a half on the trading session. general electric also disappointing investors with part of its outlook on friday. jp morgan downgraded the stock. it is trading down better than 2% at 21.27. investors breathing a little sigh of relief that it wasn't worse. right now it is up almost 3%. and microsoft moving higher after david reported activist investor had take an $2 billion stake in the company. microsoft is up a full 4% on the trading session. which brings us to bob and kenney, a cnbc contributor. let's talk the big caps. i'll turn to you first.
1:06 pm
cat has been the canary in the coal mine in terms of global demand. what concerns me about the camera port is it's really a global bellwether. certainly the big defensive type, we have seen it. the big dividend are where people want exposure. >> and you wrote about this this morning. >> these are the guys who make all the stuff behind the walls. the heating and air-conditioning and the bolts. general electric being one of them. tomorrow we're going to get united technologies as well.
1:07 pm
another company company down tomorrow. we will get that worries me. ibm is the stock market today. that cracking on friday got a lot of people very alarmed. >> it's a bellwether perhaps. >> sue, apple has moved higher today. and it is currently trade iing stock is, of course, of 705 a share.
1:08 pm
>> tiler, that's a pretty staggering job. they were looking at 42.5 billion $s in revenue. and apple sold almost 48 million units. about 8% and eps 15 to 18
1:09 pm
million units is where they expect it to come in. >> sue earlier mentioned the shares of microsoft getting a bit of a pop today something like 4% as the tech giant has got a new investor. what's the back story here? that's a little less than 1%. they are saying right now they will not get too involved unless they get unhappy with microsoft
1:10 pm
direction. pushing for changes there. they will have to see what happe happens. >> all right. thank you very much. sue down to you. take a look at that chart. josh is our trade detective on this one. as you said, more interestingly maybe is the stock. the analysts flagged this one for us. a blink of an eye. provides us with more color. the move took just one second. it involved some 57,000 shares
1:11 pm
of orders from ten ix changes. back to you. >> all right. let's talk more about this and bring in our next guest. >> regulators don't have a whole lot of ability to track this sort of thing. they don't have the ability the look at realtime market trading data. they don't have the market to rewind the tape and look at what happened here. if there is an indication of fraud they could go in but it takes a lot of time and energy.
1:12 pm
>> you would think if anybody has the ability to look at moves like this on a minute to minute basis it would be the people who look into insider trading and things like that. >> yes, it's a good question. brings up a more broad argument here. when you see a move and headline like that, it feeds into that perception. >> thank you both very much. questions being raised at the intelligence gathering in the boston marathon bombings. >> how long in this day and age after an ins tent of domestic
1:13 pm
terrorism before people start pointing fingers? we will know now one week. >> i'll tell you what companies specializing in security are doing to prevent an attack. i will have a list of names that stand to do big business with governments across the u.s. more power lunch in two minutes.
1:14 pm
1:15 pm
1:16 pm
>> a >> a moment of silence will be held in boston at 2:50 p.m. right now the suspect is in the hospital awaiting charges. the mourners line up in medford, massachusetts, to say good-bye to christal campbell, one of the three people killed in those bombings. and the blame game starts. did not find any terrorism activity at the time. we are live with more on that particular part of the continuing investigation. good afternoon, scott. >> good afternoon. a great deal of focus right now on the medical center and where
1:17 pm
dzhokhar is being questioned. prosecutors have been preparing a criminal case. he will not be tried as an enemy comba comb combatant. and video reportedly shows tsarnaev placing the bomb at the site one week ago. investigators are continuing to go over the boat were tsarnaev hit out. the man who has the most answers is no longer alive to give them. his older brother was killed in the police shootout on friday. we know now that two years ago he was back in russia.
1:18 pm
that's raising a lot of question s. >> this is the fifth case that i'm aware of where the fbi has failed to stob someone who became a terrorist murderer. wanting to know what went wrong. tsarnaev appears to be the fifth person to participate in terror attacks despite being under investigation by the fbi. prior to april 15, 2013. authorities want that information by the end of this week.
1:19 pm
>> certainly after the bombings in boston, they are in toe kus oppenheimer saying that the tragic bomb attacks underscore the need for governments to enhance security solutions. companies to watch for include
1:20 pm
detection equipment makers. there is also others who are two of the leading suppliers. many of these lagging because of government budget cuts and sequestration. the spending impact following the boston marathon another major grand scale incident. we are watching these stocks very closely. they are mixed as a group. >> sue down to you. >> speaking of technology, this is a different kind. we are focusing on apple trading below $400 a share. we will an loois talyze the ana when we come back.
1:21 pm
1:22 pm
1:23 pm
>> monday, of course, a big day for analyst calls. let's analyze the analysts. hi, jim, how are you? >> good, ty, thanks. >> big day for apple. bgc. upgrading the stock from buy to hold. $4 price target on it. $600 price target here. here is where things get
1:24 pm
interesting. i'm having a hard time wrapping my head around all of this. shares have been going down since the stock hit all time highs back in september. that's not really sticking your neck out is it? we also know they have a ton of cash and they may use it as a difd end. >> let's move on to verizon. saying that it's time to take profit before the vod is
1:25 pm
announced. what do you think of this one? >> at the time it had a 70% rally. but this time when you're talking about a take overor a buy-out that is a great motivator. >> and upgrade iing netflix fro neutral to sell. shares seeing a nice bump on the trading session. what are you seeing here? >> but the market has had netflix as neutral since january. for years we have been talking about how competition is going to affect and netflix is going
1:26 pm
to wipe them out. >> jim, thank you very much we appreciate it. >> some americans are changing the way they do business to avoid paying any federal taxes. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro.
1:27 pm
but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
1:28 pm
1:29 pm
>> >> well, the gold bulls are saying it's about time. gold is finally rallying today. sharon epperson is tracking. it was quite a week. >> it was quite a week and day last monday. the biggest dollar loss that we saw for gold on record. perhaps gold has hit a bottom. others are saying there that it's really too early to definitely say that. this is the third largest three-day gain that we have seen since august of 2012. we're up about $100 or so from
1:30 pm
the lows that were hit last week. right around $13.21 an ounce is what we saw last week. a lot pointing to the fact that we're seeing the latest that we're reading, they have sold in the month of april, 167,000 coins. that is the retail demand side. but there is another side to what has happened. the largest gold exchange traded fund. the gld saw over $2 billion come out of that one exchange traded
1:31 pm
fund just last week. that's a big reason why some are saying not yet. barclays have cllowered their price forecast. >> thank you so much. it is kind of quiet down here today. >> the markets are a little unsure which way to go. look at some of these multiindustry names. tea was $23. it's $21 now.
1:32 pm
we're going to see these companies are important because they make all the things behind the walls. most of the home builders have been positive. i want to know the home builders are down. >> net flix is one of the ones
1:33 pm
that you're watching. >> most definitely. another mover on the radar? texas instruments a slew of tech firms reporting this week. all of these companies reporting last week. morgan stanley raising its hepatitis c revenue estimate to 2016.
1:34 pm
rick is here to update us on all sorts of other global affairs. >> you nailed it again. we are just drifting southward under the 170 area. we don't talk about this too much. whatever you want to call it. t
1:35 pm
the. >> rick, thank you very much. to housing now. profit at the home builder nvr jumping almost 75% but it wasn't good enough for wall street. meanwhile, new data out today showing that home sales of existing homes have stalled. >> the wor wor the realtors use was stuck. home sales hovering in the last five months. they were hoping to break the 5 million mark but it just didn't happen. why? supplies or lack there of. still down 17% from a year ago.
1:36 pm
but this year they had barely 30,000 more. in minneapolis fly is still down the most on the low end. the trouble is the move up buyer is not moving likely because they see prices suddenly moving. of course they want more. now with investors that's keeping first time buyers on the sidelines.
1:37 pm
that is unlikely to happen because the builders are facing lack of land, labor and materials. there is much more. tiler? >> and a story in the "new york times" today on how many are trying to label themselves real estate investment trusts to avoid taxes. >> it's all about trying to lower tax bills. >> there are some examples saying essentially a jail is a piece of real estate and if state is paying rent for the prisoners. cell phone towers being considered real estate. >> thank you very much.
1:38 pm
>> in a separate development, new york city is taking steps to raise the minimum age of buying cigarettes from 21 to 18 years of age. down just a fraction as is bti. that's a 57% premium above friday's closing price. and ralph lauren after settling a criminal and civil probe into
1:39 pm
allegations it bribed government officials in argentina. you're up to date.
1:40 pm
[ laughter ] ♪ [ female announcer ] each one of us is our own boss. ♪ and no matter where you are in life, ask your financial professional how lincoln financial can help you take charge of your future. ♪ but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. how's that for an encore? i've always had to keep my eye on her... but, i didn't always watch out for myself.
1:41 pm
with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack. we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. >> criminal >> criminal charges have been filed now against the sole surviving suspect in last week's marathon bombing. this is revealing on twitter that dzhokhar tsarnaev is charged with mass destruct resulting in death. apparently arraigned in his
1:42 pm
hospital bed. more as we get it but again dzhokhar tsarnaev now charged criminally. >> thank you very much. let's transition to see what's coming up on street signs. >> there are a lot of companies out there making record profits. in some cases, sharing of that wealth with employees. we will ask our guests should shareholders start to reward companies rather than just boosting through cost cutting? it's a great debate and all coming up. some are saying the super cycle is dead. others are saying now is the. >> thanks. we'll see you at 2. take a look at some of the
1:43 pm
damage in st. louis. those floodwaters making many of the roads impassable. the governor has declared a state of emergency in much of that state. the bad news is that there is more rain and snow headed to the battered area. >> i tell you, this is what's preventing the mississippi river from flowing into the city or town of clarksville. right now, this river is
1:44 pm
crested. it's going to be very slow coming down and then the crest will go down river to the south. below that and throughout the week, cape jirado and next week is the big concern. that's when all the snow up north in the dakotas and they feel they have won this round. they feel confident but there are a lot more rounds to come. >> and exploring a bid to buy the tribune company. >> they have done little in the media space, which is why the
1:45 pm
reported interest is drawing speculation that they have used the newspaper to promote small government and more. this includes the times and the chicago tribune. cook industries issuing a statement saying it as an entrepreneurial company. we are continstantly exploring ideas. it is our long standing -- now the la times in particular has drawn interest from news corps as well as a group led by billionaire billionaires the paper is
1:46 pm
becoming a battleground of sorts. it is said that the koch should not own the la times because of their political standpoints. the next step is they will circulate financial data. sue will continue to follow the story. >> we're going to go back up to scott kohn who brought us the news that the department of justice has filed charges against the second suspect one of the big was whether or not he was going to be charged by the department of justice or a military trial.
1:47 pm
what are the advantages? >> i can tell you a little bit more about the criminal complaint just unsealed. it's one count of conspiracy to use a weapon of mass destruction. the penalty for that is life in prison or the death penalty. one of the things considered early on is whether he would be subject to state charges in a state that does not have the death penalty or federal charges that do include the death penalty.
1:48 pm
and white house spokesman pointing out that hundreds of terrori terrorists have been tried and convicted under this law and that people should have faith in the justice system. did the complaint or the arraignment documents include any information as to whether the justice department intends to ask for the death penalty or is that a decision that will come downstream? >> it will presumably come downstream but i think it's a fair bet that they will. i should add that the justice department arraigned him in his hospital bed. >> let me bring in john and
1:49 pm
brian. we were going to talk about something else but this trumps a all. two gentlemen have law degrees. >> the court can arraign without a grand jury proceeding. and so, i think, you know, this is a very good thing to be doing outside of the military. we can show that in the united states there are normal criminal procedures. we don't need to declare him an enemy. that's calling him a soldier, but he's not. he's a terrorist. >> does he have to be present at the time the arraignment was delivered? >> he was arraigned in his
1:50 pm
hospital bed, which means that a federal magistrate came to the hospital and he had representation there. he has been charged. they can come in later and get a grand injury indictment. the complaint is the first step. >> you say he had representation there. i assume that word is very considered on your part, scott? do we know anything more about whether he has or has not been read his miranda rights? >> if he has been charged he probably has been. but it sounds like they delayed that. there was a public safety exception where they can question him about are there other devices planted elsewhere?
1:51 pm
under this public safety exception they could ask him about that without giving him those rights. >> i think -- let me finish up. i'm going to give you credit. what you were saying was very important. whether or not this will be a local case or this is going to be a military court. the fact is by charging him in massachusetts, they are saying we have enough evidence in a court which will be highly visible. they believe they can make a ca case. >> this is a big point when people were saying did he get
1:52 pm
the rights or not? there is so much other evidence. >> evidence that they can use. >> which we're going to talk about in a minute. >> we're going to take a quick break and come back and talk about this. tsarnaev has been charged of using a weapon of mass destruction. more on that right after this.
1:53 pm
1:54 pm
1:55 pm
>> welcome back. we have been combing through more of the charges against dzhokhar tsarnaev. a couple of different notes here. the defendant declined to answer bail questions but did ascent to a probable cause hearing. what would happen at a probable cause hearing? one would assume by that point he will have recovered from the wounds he suffered. >> there is no doubt from what we have seen that there is probable cause to charge him, to hold him.
1:56 pm
>> i'm sorry to read. the fbi searched his dormroom and they found a blackjack et and a white hat of the same general appearance of those worn by bomber 2 at the boston marathon. >> i got it. seems like this is the guy who didn't have the ability to whatever, if he is the person involved. >> it seems -- >> he couldn't even get rid of his clothes. >> and interestingly enough, you read the complaint and it really goes through the events leading up to the bomb iing then they separated. he is working his cell phone, walks away from the cell phone.
1:57 pm
the first bomb goes off. it goes through the carjacking in which one of the brothers holds a gun to the victim's head and demands cash. and then the victim is released. we know the rest of the story. >> we do. scott, thank you very much that will do it for power lunch. >> see you tomorrow. we went out and asked people a simple question:
1:58 pm
1:59 pm
how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

43 Views

info Stream Only

Uploaded by TV Archive on